Retirement Planning Advice from Homer Simpson, Clark Gable and Tom Cruise
Some of the most famous lines from movies and TV can give you valuable insights for retirement planning -- what to do and what not to do.
Let's start with the most famous movie quote of all time:
Frankly, my dear, I don't give a damn.
Just what did Scarlett O'Hara say to elicit this famous response from Clark Gable as Rhett Butler in Gone With the Wind? I think she probably said something like this:
Oh, Rhett, if we get married, will you promise to be careful with your retirement planning? After all, most likely, you'll die before I do, and I don't want to be an impoverished widow in my later years. You know I don't look good in black.
Okay, Scarlett O'Hara said nothing of the sort. But this is a useful exercise because Rhett's response is a good example of what not to do. Poverty among elderly widows is a real problem in America. Yet if you look at the retirement planning decisions made by many husbands, it appears they think like Rhett. I'm sure that's not their intention, but I think they should look to a (somewhat) more recent movie for better advice. Click through to the next page to find out.
Love means never having to say you're sorry.
When Ali MacGraw's character, Jennifer, said this to Ryan O'Neal's character, Oliver, in the movie Love Story, he said something wonderful, I'm sure. But here's the financial advisor's response:
"I'll maximize your Social Security widow's benefit by delaying the start of my benefit until age 70. I'll elect the joint-and-survivor option in my pension plan, so that you'll have a secure retirement income, no matter how long you live. And I'll be prudent when drawing down our 401(k) savings, so it will be there as long as you live. I won't ever be sorry about our love -- or how I cared for you -- even from my grave!"
Isn't that incredible how Oliver demonstrates his love for Jennifer by being responsible with his retirement planning decisions?
As emotionally and actuarially touching as that little speech was, however, movie buffs will spot at least one error. Financial experts will notice another. Do you know what they are? You'll find the answers on the next page.
The first problem with the speech is that Ali MacGraw's character, Jennifer, had a fatal disease, most likely leukemia, denying the couple the chance to have a life together. And it was actually Ryan O'Neal's character, Oliver, who ended up being the survivor, not Jennifer. But Oliver had the right ideas -- he just needs to keep them in mind after he gets over his tragically denied love and meets his future wife.
The second problem is more subtle. The movie took place in 1970, well before the invention of 401(k) plans. So Oliver wouldn't have had any 401(k) savings to draw from.
If you movie buffs can find other errors with this page or any other page in this post, please amuse our readers by writing in the comments section at the end of this post.
Read on for more advice about what not to do, from Homer Simpson.
Bart, with $10,000, we'd be millionaires! We could buy all kinds of useful things, like...love!
This was Homer Simpson's poor financial advice to his son, Bart. Many people make similar mistakes, like overestimating how their money will stretch in retirement, and underestimating how much money it takes to generate a lifetime retirement income.
You'll be much better off if you do the math so that you know how much retirement income you'll need to cover your living expenses, and how you'll piece together this income. In particular, you'll want to know how much retirement savings you'll need to generate sufficient retirement income.
Keep reading for better advice from Tom Cruise.
Show me the money!
Cuba Gooding's character, Rod, may have been excited about the deal Tom Cruise's character, Jerry, was trying to strike for him in the movie, Jerry Maguire, but Jerry was thinking ahead when he told Rod this:
Rod, I've done the math. My Excel spreadsheet shows how much retirement savings you'll need to generate a lifetime retirement income, no matter how long you live and no matter what happens in the economy. It also shows you how much retirement income you'll need to supplement your Social Security income, so you can cover your living expenses. Now that's showing you the money!
Jerry's done the right planning for Rod. Surveys show that most Americans only guess at how much money they need to retire -- and they guess too low. The Employee Benefit Research Institute's 2011 Retirement Confidence Survey shows that people who actually do the math to estimate how much money they need in retirement will feel more confident in their ability to retire.
How will Rod feel if he follows this good advice from Jerry Maguire? Keep reading for inspiration.
Today, I consider myself the luckiest man on the face of this earth.
You might recognize these words from the 1940s classic, The Pride of the Yankees, spoken by Gary Cooper's character, Lou Gehrig. And Gehrig actually said these words in his goodbye speech at Yankee Stadium after his premature retirement forced by amyotrophic lateral sclerosis, now known as Lou Gehrig's disease.
If you do a good job with your retirement planning, you'll say these same words yourself at your 90th birthday party, after you've had a prosperous retirement and still have sufficient financial resources to last to age 100 or beyond!
More on MoneyWatch:
- Husbands: Poor Retirement Planning Decisions Can Lead to Desperate Housewives
- Women: Five Key Reasons Your Retirement Is At Risk
- Social Security Strategies: How to Get $90,000 More For Your Spouse
- How Much Retirement Income Do You Need?
- How Much Retirement Savings Do You Need?
- Survey: Americans' Retirement Fears at All-Time High
- How to Restore Your Retirement Confidence
View all articles by Steve Vernon on CBS MoneyWatch»
Steve Vernon helped large employers design and manage their retirement programs for more than 35 years as a consulting actuary. Now he's a research scholar for the Stanford Center on Longevity, where he helps collect, direct and disseminate research that will improve the financial security of seniors. He's also president of Rest-of-Life Communications, delivers retirement planning workshops
and authored Retirement Game-Changers: Strategies for a Healthy, Financially Secure and Fulfilling Long Life and Money for Life: Turn Your IRA and 401(k) Into a Lifetime Retirement Paycheck.
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